The 2013 Fiscal Cliff refers to the United States economy succumbing to an estimated $600 billion in tax increases and spending cuts which will automatically go into effect January 2013 unless Congress can come to an agreed upon budget.

The previous agreement, which was a stimulus measure on tax cuts, will expire on January 1, 2013. There will be automatic tax cuts to defense, education, and other government spending; thus, forcing the United States economy to go over the “Fiscal Cliff.”

The perception of this event is that the economy does not have the momentum to absorb this type of shock without going into a recession. Although both parties have proposed plans to reach a compromise, no deal on the budget has been reached.

“We hope a Fiscal Cliff is averted and Congress comes to an agreement. However, if a compromise is not reached, Belvoir Federal stands ready to serve our members who are impacted by providing financial options and services to assist them during this challenging time,” stated Patricia Kimmel, Belvoir Federal Credit Union’s President/CEO.

If a Fiscal Cliff does occur, Belvoir Federal stands ready to assist their members with an emergency loan, allowing members to borrow funds at a low rate for one year with a 60 day deferment.

Additionally, Belvoir Federal will facilitate loan workouts and skip-a-pay options for members so they do not default on their loans. Lastly, Belvoir Federal will also be providing Financial Coaching services to those in need of guidance during the difficult economic circumstance.

About Belvoir Federal Credit UnionBelvoir Federal is a member-owned, full-service financial institution that provides the foundation for the financial success of our Members. Belvoir Federal, a not-for-profit organization, has served the Fort Belvoir and U.S. Armed Forces community since 1946.